Individual Pay for Collective Performance and Deforestation: Evidence from Brazil

Po Yin Wong, Karlygash Kuralbayeva, Liana Anderson (), Ana Pessoa () and Torfinn Harding
Additional contact information
Liana Anderson: National Center for Monitoring and Early Warning of Natural Disasters (CEMADEN)
Ana Pessoa: National Institute for Space Research (INPE)

No 110, Working Papers from Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research

Abstract: We study Brazil's Bolsa Verde program, which pays extremely poor households for implementing sustainable activities and maintaining forest cover at the communal level. Using difference-in-differences, we find that the program keeps deforestation 22% lower inside treated areas compared to similar untreated areas. The estimated program benefits in terms of emissions reductions are about four times the program costs. Heterogeneous effects across property types suggest that the program provides protection against deforestation pressure from groups other than program recipients. Data on fines and satellite-based alarms point to monitoring and reporting as a mechanism through which the program reduces illegal deforestation.

Keywords: Deforestation; Poverty; Conservation; Evaluation; Brazil (search for similar items in EconPapers)
JEL-codes: I38 O13 Q23 Q28 Q56 (search for similar items in EconPapers)
Pages: 81 pages
Date: 2023-02
New Economics Papers: this item is included in nep-agr, nep-dev and nep-env
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